Wendy Berman, the new chair of the Canadian Sustainability Standards Board (CSSB), says the best move for companies is to report sustainability and climate-related data even as resistance mounts against corporate responsibility initiatives.

A lawyer with decades of experience in securities regulation and litigation, Berman is a former vice-chair of the Ontario Securities Commission (OSC) and was a partner and the head of the national securities litigation group at law firm McCarthy Tétrault before joining the CSSB in May.

She is now leading the Canadian standards-setter for corporate and institutional disclosures that align with the International Sustainability Standards Board on areas such as reporting on carbon emissions and ensuring the data is comparable and verifiable to minimize greenwashing. The first Canadian Sustainability Disclosure Standards were released in December 2024.

Increasing the adoption of the standards and resolving major business concerns are among the main objectives for Berman, as the corporate world and regulators show signs of having less appetite to showcase their green credentials.

Succumbing to this trend would be a mistake, Berman said in an interview with Sustainable Biz Canada. The physical risks of climate change – and those associated with the transition to a low-carbon economy – will affect every industry, and backing off now will mean working with less information and walling-off investors.

Canadian companies will be “stronger financially and operationally” and remain competitive on the global market by holding the line, she said.

“There isn’t really an industry that will not be affected, whether it’s risks or opportunities, by what we’re seeing.”

Why a sustainability standard is vital

When Berman was vice-chair of the OSC, she deepened her understanding of how climate change would impact Canada. This included learning about the risks and opportunities from a warming climate, and how social aspects such as housing and human capital intersect with the issue.

Though Berman loves practising law, she felt great urgency about the environment and wanted to help the CSSB move the country forward on sustainability disclosures. Her motivation led her to the helm of the organization.

“I saw that Canada had an opportunity to lead as we transition to a low-carbon economy,” she said.

As chair of the CSSB, one of Berman’s priorities will be widening acceptance of its standards by government agencies, regulators and companies. Those steps include engaging with participants in capital markets, assisting in the implementation of the standards, and understanding how hurdles can be overcome.

Rolling out the tools, plan and education to encourage use of the CSSB’s sustainability and climate disclosure standards across Canada is another major goal.

Ensuring Indigenous Canadians’ rights and interests are included in sustainability disclosures is a major element in the CSSB’s plan for 2025-26. “We have an opportunity to set the standard globally for how that is done,” Berman said.

Outside Canada, she will advocate for Canadian interests when talking to international standards setters.

It is critical to have a standardized framework for disclosures, Berman said, as its absence raises risk for companies. She anticipates a pullback from voluntary disclosures because of the lack of a mandatory, consistent set of guidelines for sustainability and climate.

This is already happening in the corporate world. RBC has retreated on its goal to support $500 billion in sustainable finance by 2050, and the Canada Pension Plan Investment Board (CPPIB) last week announced it is withdrawing its previous goal to be net-zero by 2050.

RBC blamed amendments to the Competition Act requiring environmental claims be proven with an internationally recognized standard. The CPPIB pointed to legal changes that impact net-zero pledges with required adoption of standardized metrics and interim emission reduction targets.

Disclosures are good for business

The disclosures are a net positive for businesses, Berman said. While some may view them as onerous, the standards cover both risks and opportunities, which make companies resilient and responsive. The standards enhance trust and confidence in companies, she added.

Investors have been leading the global push for greater transparency, Berman noted, as many feel disclosures are necessary to evaluate and price their investments.

Berman has been encouraged by the level of adoption and support to date for the CSSB’s standards. A notable boost was an endorsement by the largest Canadian pension funds. She hopes that interest will ramp up, either by companies taking their own initiative or government agencies making it mandatory.

Voluntary use can only take Canada so far in the global arena for capital, she said. Making the standards mandatory will be a crucial step in mass adoption.

“Ultimately we will continue to support and encourage adoption by regulators such as the [Canadian Securities Administrators],” Berman said, “because we think that this is a critical part of the journey towards ensuring Canadian companies are best positioned competitively in the fight for global capital.”